Cosmetics and toiletries to France

(Last updated: 10 Jan 2008)

Trends and opportunities

The market

The cosmetics and toiletries industry in France is divided into the following categories:

• Beauty products – 37.1 per cent
• Hair products – 23.3 per cent
• Perfumes – 19.8 per cent
• Toiletries – 19.3 per cent
• Other – 0.5 per cent

The French cosmetics and toiletries market is characterised by a host of long-established companies and brands. With three of its subsidiaries among the top five companies, the L'Oréal Groupe remains the undisputed leader.

France has the highest proportion of premium product value sales in Western Europe. However, the mass market is also well established. The constant upgrading of brands such as L’Oréal, Gemey and Nivea, has started to blur the distinction between mass and premium brands, affecting distribution through specialised perfume shops negatively. Hence, the mass market’s share in France has continued to increase.

Products emphasising wellbeing are increasingly popular in France. Natural products and aromatherapy are well established in product ranges from companies such as L’Oréal.

Cosmetics and toiletry companies are constantly looking to anticipate the changing tastes of consumers with two recurring strategies – publicity campaigns and technological innovation. A direct result of this activity is that innovative and high performance products are continually entering the market.

In 2004, as initiative of the French Prime Minister Jean-Pierre Raffarin’s government, France launched its 'competitive clusters projects'. These projects are innovative regional structures that aim to promote local innovation by arranging for French companies to work together with research centres or training organisations. These regional cluster groups are a way for the French perfume industry to deal with new challenges of competition in the international market and are proving very successful.

Key trends and statistics:

• Despite the classification of the French cosmetics and toiletries market as ‘mature’, key analysts within the industry predict the annual growth rate of 2.3 per cent to continue until 2006. In fact, France experienced a 3.9 per cent growth in 2006 according to Copila.
• In 2011, it is forecasted that the fragrance market value will have increased by 10.6 per cent but the market volume only increased by 1.5 per cent for the same period.
• In 2011, it is forecasted that the skincare market value will have increased by 17.8 per cent and the market volume increased equally by 16.7 per cent for the same period.
• The skincare industry is expected to see compound growth of 3.3 per cent from 2006 to 2011.
• Fine segmentation has become the key to survival in a highly marketed and maturing sector. The growing number of 'young seniors' (50-65 age group), keen to maintain a look of youthful vitality, remains a priority target due to the high disposable income of these consumers.
• Eighty-five per cent of French women between the ages of 60 and 64 use facial care products on a daily basis according to survey conducted by TNS Media
• The development of cosmetics and toiletries specifically designed for men is an emerging category in France. The popularity of men’s lifestyle magazines continues to boost consumers’ emphasis on their appearance.
• There is an increasing trend for 'cosmebio' (organic cosmetic labels), which only use natural ingredients.
• Although the market for shampoo, deodorants and fragrances is approaching maturity, it continues to thrive from value growth due to increasingly sophisticated ranges that are backed by strong research and development programs. There is still significant potential in other sectors (such as depilatories and men’s grooming products).

Opportunities

The cosmetics and toiletries industry in France is increasingly seeing a trend towards products targeting a specific demographic (eg. older generation and adolescents). Further to this, there has been an increase in specialised ranges such as hair care products. The majority of companies are now looking to service niche markets.

Environmental concerns are of prime importance to cosmetics and toiletries companies in France. The industry is continually looking for new ways to make their products and product processing environmentally friendly. Focus areas include recycling, biodegradable products and packaging, and replacing harmful ingredients. Furthermore, customers are becoming more 'ethically conscious' and looking to brands who act with a sense of moral responsibility. 

With the recent legislative change in international airline travel regulation, there is also a need for new cosmetics and packaging. Already travel cosmetics are being repackaged into transparent purses, in sizes less than 100mL and cream or gel products are replacing aerosol products. It is unlikely that such airline regulation will change in the near future and so one can maximise on this new market.

Competitive environment

In France, Australia is not yet considered a major source of cosmetics and toiletries. The local market is highly developed and most imports come from the USA or from within the European Union (predominantly Germany and the UK).

Tariffs, regulations and customs

As a member of the European Union (EU), France is also regulated by European Directives. Most of these directives are now incorporated into French law. Latest reports and information on the directives can be obtained (for a fee) from the European Cosmetic, Toiletry and Perfumery Association. Information about how these directives apply in France can be obtained from the relevant government offices.

The EU has a harmonised trade system. The Integrated Tariff of the Community (TARIC) is applicable to goods from non-EU countries, including Australia. Most duties are ad valorem (%), based on the GATT Valuation Code (approximate CIF value). Customs duties on cosmetics preparations from Australia vary according to product type and exporters should first establish the correct TARIC code for their product in order to obtain the correct duty percentage.

Before shipping any goods to France, a written customs duty ruling should be obtained from the French Customs Office, part of the French Ministry of Economy, Finance and Industry. These rulings are called Binding Tariff Information (BTI).  Getting a BTI is free and will prevent any conflict over customs or excise duty. It is usually the freight forwarder’s duty to obtain the BTI.

Value Added Tax (VAT) is also charged. Certain pharmaceutical products are subject to a lower rate of VAT (2.1 per cent or 5.5 per cent) as opposed to the standard rate of 19.6 per cent.

Industry standards

Labelling is strictly controlled in France and companies are advised to examine EU and French laws. Although many labelling regulations are sector specific, the following information, is generally required for all categories of products:

• Labels must be written in French. Any foreign words or abbreviations must be authorised by French or international law. The writing must be clear and non-promotional.
• State exactly what the product is, eg. olive oil.
• Any names, symbols and marks relating to the product must be found on the exterior of the packaging, the product label, and the bottle-top or lid, as the case applies. Registered brand names and trademarks can only be used by the manufacturer.
• All ingredients or materials constituting the product must be listed, in descending order of weight.
• Instructions of how the product is to be used. 
• Information about product safety such as provisions and restrictions relating to ingredients and in the event of emergency, information on treatment.
• The date of minimum durability indicated by 'best before/end of …'. For products with minimum durability less than 30 months and the 'period of time after opening,' which the product can be used with harm to the consumer for products with a minimum durability less than 30 months.
• Qualifiers, eg. 'made by hand' on leather goods. 
• Name/address of manufacturer or vendor. 
• Name and address of person who conducted safety assessment of product.
• Name/address of person in charge of marketing the product in the EU.
• Labels must inform the consumer of any particular product limitations or sales conditions. The price (including all taxes) must be marked on all pre-packaged goods, unless they are sold by mail order. 
• Bar code price labelling (GENCOD) – stores are increasingly using this system to speed up the passage of clients at cash registers. GENCOD, France's bar code price labelling system, is generally used for products with a low per-unit value and rapid turnover, as well as for food and non-food products requiring an individual price marking because of their value, nature, or presentation. 
• Quality and ecological labels. There are more established quality seals and labels in France than in any other European country. Whilst such labels are desirable to inform the customer, they are not mandatory.
• In relation to bio/organic cosmetics, there is no official EU regulation on certification and labelling of such cosmetics as yet.

(Sources: US Commercial Service and www.beauty-on-line.com)

Marketing your products and services

Market entry

The main entry channels into the cosmetics and toiletries industry in France are:

• Pharmacies
• Department stores
• Independent retailers
• Supermarkets
• Mail order and Internet

Supermarkets have expanded into the cosmetics and toiletries market in recent years with a growth in store-brand ranges. In turn this has rejuvenated the middle market for cosmetics and toiletries. In France the Monoprix chain of city hypermarkets is well-known for its cosmetics shelves. The major French supermarkets include:

• Monoprix
• Champion 
• Casino
• Carrefour
• Auchan

Upmarket department stores such as Galeries Lafayette, Printemps, Samaritaine and Le Bon Marché in the Parisian district, may provide an attractive outlet for cosmetics and toiletries targeting the higher end of the market. However, it is possible that some department stores will request exclusivity for a defined period of time.

The independent and specialist retail sector in the French cosmetics and toiletries industry is highly developed. The three main stores in this sector are Marionnaud Parfumeries, Sephora and Yves Rocher. Marionnaud Parfumeries is a large cosmetics retail chain in France, selling a wide variety of brands in cosmetics and perfumes. Sephora has stores in most regional centres, including its huge Champs Elysées store. It has a reputation for carrying most products and all major brands. Yves Rocher is well known for its natural own-brand products and exists in most French cities and towns.

Mail order has become popular in the cosmetics industry over the last 50 years. Various French brands have been successful including Yves Rocher, which is now considered a pioneer in this area. Companies that are part of the Yves Rocher group, Daniel Jouvance and Docteur Pierre Ricaud, are also performing well in the market. Their products have paved the way for the entry of smaller companies, who focus on natural health such as Thalasso. Most of the cosmetics catalogues available on the market are usually specific to a particular brand.

Advertising is crucial when marketing within the French cosmetics industry. The emergence of sensory marketing is evident across the board, through ergonomic new product designs, therapeutic scents and sensual textures.

Attending trade events will also provide further opportunity to market your products. A list of industry events in France can be obtained from Société Française de Cosmétologie, under the heading ‘Manifestations’. Looking through the list will pinpoint which trade fairs are most relevant.

Société Française de Cosmétologie 
French Society of Cosmetology
17, rue Carle Hebert
92400 Courbevoie, France
Tel: +33 (0)1 4788 6602
Fax: +33 (0)1 4788 6650

Distribution channels

There are four channels of distribution for cosmetics and toiletries products:

• Mass distribution – 53.8 per cent
• Specialised distribution – 27.8 per cent
• Pharmacy sales – 9.7 per cent
• Direct sales – 8.7 per cent 

Specialised distribution includes perfume shops (parfumeries) and specialty counters in large department stores, while general distribution is through supermarkets and shopping centre outlets. A limited number of companies choose pharmacies to distribute their products.

Distribution via pharmacies offers the consumer the opportunity to select products in what is seen as a professional and clinical atmosphere. A limited number of companies (for example Vichy) choose to distribute their products in pharmacies.

Links and industry contacts

Government, business and trade resources for France

Agence française de sécurité sanitaire des produits de santé (AFSSAPS) – www.agmed.sante.gouv.fr
French Ministry of Health – www.sante.gouv.fr
French Ministry of the Economy, Finance and Trade – www.industrie.gouv.fr
French Ministry of the Economy, Finance and Trade: General Management for Fair Trading, Fraud Control and Consumer Affairs (DGCCRF) – www.minefi.gouv.fr

Media

Beauty Online – www.beauty-on-line.com
Cosmetics World – www.cosmeticworld.com
Cosmetiques News – www.cosmetiquenews.com
Parfums-cosmetiques – www.parfums-cosmetiques.presse.fr
European Cosmetic Market magazine (UK-based) – www.ecm-magazine.com

Beauterama
A professional magazine only published in French.
19, Rue Ernest Deloison
92200 Neuilly-sur-Seine, France
Tel: +33 (0)1 4747 6376
Fax: +33 (0)1 4747 5906

Les nouvelles esthetiques 
A professional magazine dedicated to beauticians.
7, avenue Stéphane Mallarmé
75017 Paris, France
Tel: +33 (0)1 4380 0647
Fax: +33 (0)1 4380 8363

Gloss Publishing
5, rue d'Aboukir
75002 Paris, France
Tel: +33 (0)1 4482 7050
Fax: +33 (0)1 4482 7051